Core Reports Most Profitable Q1 Ever; Company Posts Weather-Adjusted Pro-Forma EPS Of $1.45; All-Time Q1 Highs For EPS, Net

Core Reports Most Profitable Q1 Ever; Company Posts Weather-Adjusted Pro-Forma
  EPS Of $1.45; All-Time Q1 Highs For EPS, Net Income, And Revenue; Company
                      Raises Quarterly 2014 EPS Guidance

PR Newswire

AMSTERDAM, April 23, 2014

AMSTERDAM, April 23, 2014 /PRNewswire/ --Core Laboratories N.V. (NYSE: "CLB
US" and NYSE Euronext: "CLB NA") posted its most profitable first quarter in
Company history. The record first quarter levels of earnings per diluted
share ("EPS"), net income, and revenue were driven by year-over-year
improvements for all three of the Company's operating segments. Reservoir
Description and Production Enhancement operations reported record first
quarter revenue, operating income, and operating margins, while Reservoir
Management operations posted its most profitable quarter in Company history.
As was the case for all other oilfield service companies with operations in
Northern America and Europe, these results were weakened by severe
weather-related disruptions. Specifically, Core believes first quarter 2014
EPS was reduced approximately 5%, or $0.07 per diluted share, because of
transitory weather disruptions, slower than expected international activities,
and delays of certain deepwater development projects.

Core Lab Logo

After removing the effect of the weather disruptions and project delays, and
excluding foreign exchange ("ex-fx") referenced in the non-GAAP
reconciliations, Core's first quarter 2014 EPS increased 19% from year-earlier
totals to $1.45. First quarter net income increased 10%, ex-fx, to
$62,280,000, and operating income, ex-fx, increased 7% to $84,427,000.
Year-over-year first quarter 2014 revenue increased 1% to $262,903,000, lower
than expected due to the transitory weather impact and delays of certain
deepwater development projects. However, because of increased demand for
Core's reservoir-optimizing technologies, along with productivity gains in the
Company's global operational network, first quarter 2014 operating margins
expanded 180 basis points to an all-time quarterly record of 32%, ex-fx, even
though revenue growth was lower than expected. Year-over-year quarterly
incremental margins, calculated by dividing the change in quarterly operating
income by the change in quarterly revenue, exceeded 100 percent.

First quarter 2014 free cash flow ("FCF"), defined as cash from operations
less capital expenditures, was $57,956,000, as Core converted over 22% of its
revenue into free cash. During the quarter, Core returned over $69,300,000 to
its shareholders via dividends of approximately $22,500,000 and share
repurchases totaling approximately $46,800,000. Core repurchased 254,340
shares during the first quarter of 2014, lowering the Company's outstanding
diluted share count to 45,132,000, a new 16-year low. The Company's
Shareholder Capital Return Program has returned approximately $1.73 billion,
equaling over $38 per diluted share, to its shareholders via quarterly
dividends, special dividends, and diluted share count reductions over the past
11-plus years, during which time the Company's market capitalization increased
from approximately $300 million to over $9 billion.

The Company's improved year-over-year results are a testament to Core's
long-held growth strategy of adding new high-margin technologies and
services. In addition, rather than relying on exploration budgets that are
increasingly volatile and that are trending downward as oil companies exercise
greater capital discipline, the Company continues to outperform industry peers
because of its multi-decade-long focus on existing fields and fields under
development.

As reported in previous quarters, the Board of Supervisory Directors ("Board")
of Core Laboratories N.V. established an internal performance metric of
achieving a return on invested capital ("ROIC") in the top decile of the
service companies listed as Core's peers by Bloomberg Financial ("Comp
Group"). Based on Bloomberg's calculations for the latest comparable data
available, Core's ROIC was the highest in its oilfield services Comp Group.
Moreover, the Company had the highest ROIC to Weighted Average Cost of Capital
("WACC") ratio in its Comp Group.

Segment Highlights

Core Laboratories reports results under three operating segments: Reservoir
Description, Production Enhancement, and Reservoir Management. All operating
results exclude foreign currency translations from the first quarter of 2014
as referenced in the non-GAAP reconciliations.

Reservoir Description

Reservoir Description operations, which focus primarily on offshore, complex
crude-oil projects and, to a lesser extent, North American tight-oil
developments, posted first quarter revenues of $125,256,000, up slightly from
year-ago levels. Revenue levels were less than expected as several deepwater
projects continued to be delayed because of projected cost overruns
precipitating redesign of production facilities. However, as redesigns emerge
and deepwater rig day rates and spread costs continue to decline, Core expects
more deepwater projects to be initiated over the next several quarters. For
example, Total's recent announcement that it will develop the ultra-deepwater
Block 32 Kaombo complex off Angola is a positive indication. In addition,
weather disruptions in most North American tight-oil plays and North Sea
projects pushed plans to core and collect reservoir fluids samples into later
quarters. Nevertheless, Reservoir Description posted an all-time first
quarter high for operating income at $35,381,000, up 2% from year-ago levels,
while first quarter 2014 operating margins increased 40 basis points from last
year to over 28%, establishing an all-time high for any first quarter in
Company history.

The record operating margins were underpinned by ultra-high-pressure reservoir
fluid phase behavior studies related to enhanced oil recovery ("EOR") projects
in the deepwater Gulf of Mexico ("GOM"). Data sets generated from analytical
programs for formations with pressures up to 21,500 pounds per square inch
were used to determine minimum miscibility pressures, physical properties of
reservoir fluids after contact with injection gases, and thermodynamic
parameters for reservoir stimulation models. The combinations of injection
gases and in-situ reservoir fluids were tested using Core's proprietary
Pressurized Fluid Imaging^TM system to ensure production deposition and
formation damage do not occur. These high-pressure EOR data sets and
associated flow-assurance studies are utilized by deepwater operators to
increase daily production rates while maximizing estimated ultimate recovery
("EUR") rates.

Also for deepwater and ultra-deepwater applications, Core has developed mobile
offshore reservoir fluids laboratories. These unique labs employ accelerated
fluid sampling procedures that ensure high-quality, mission-critical data sets
within hours, instead of days, thereby saving expensive rig and spread costs.
These data enable deepwater operators to make decisions regarding the
commercial viability of developments early in the appraisal process.

Core is also providing valuable EOR services in several of the tight-oil plays
in North America. Secondary and tertiary recovery projects are being
conducted to increase EUR rates and maximize the economics of shale plays
outside the "sweet spots" in various basins and shale plays, including the
Eagle Ford and Wolfcamp.

Core is studying the effects of using a low-salinity water in floods to
increase EUR rates in an oilfield that had employed other EOR techniques in
the past. The Company also is determining the effectiveness of straight CO[2]
injections versus alternating water and gaseous ("WAG") injections, and WAG
processes are showing excellent results in one field.

Several large-scale Middle East projects are ongoing to improve the production
of natural gas from unconventional reservoirs. Core has been requested to
expand its analytical capabilities in the Middle East to meet increased demand
from numerous clients who are evaluating multiple, unconventional natural gas
plays. Over 1,000 core samples from various potential unconventional
reservoirs are being analyzed for geochemical and mineralogical properties and
studied with thin-section microphotography to determine specific reservoir
characteristics.

Reservoir Description operations in Asia Pacific received 3,600 feet of core
in its Jakarta facility during the first quarter, and 1,200 feet of additional
core are scheduled for the second quarter of 2014. The cores are from two
giant field developments that involve several appraisal wells, as well as a
number of step-out wells being used to increase proven calculated reserves in
both fields.

Production Enhancement

Production Enhancement operations, which focus primarily on North American
tight-oil plays and have exposure to GOM deepwater developments, posted record
first quarter revenues of $110,280,000, up 3% over first quarter 2013 levels.
Revenue levels were lower than expected, primarily because of weather
disruptions to most North American tight-oil operations and continued delays
in deepwater Gulf of Mexico projects. However, operating income for the
quarter surged over 11% from year-earlier first quarter totals to $38,140,000,
and operating margins expanded over 270 basis points to 35%. Operating income
and margins were both first quarter highs for Production Enhancement.

Production Enhancement continues to see robust demand for its FLOWPROFILER^TM
service. FLOWPROFILER technology employs a unique oil-soluble tracer, or
combination of unique oil-soluble tracers, introduced into isolated stages via
the stimulating proppant stream. The tracers are absorbed by the crude oil
associated with each stage. When the well is flowed, crude oil samples are
collected and analyzed by gas chromatography-mass spectrometry to identify and
quantify flow from each stage. Stages not flowing optimally can be
identified, precipitating remedial efforts and providing valuable insights for
future wells.

Because this powerful technology can help maximize initial flow and EUR rates
for virtually all unconventional tight-oil plays, Core has been recommending
closer well spacings, longer laterals with more and shorter stages, and
pumping proppant to "screen-out" for all stages. While these applications can
increase well costs by as much as 20%, the additional expenses are clearly
offset by the potential for a 40% to 60% increase in the EUR of hydrocarbons
in certain tight-oil plays.

Core's proprietary completion diagnostics services were also employed offshore
in the deepwater GOM. In two separate projects, clients employed Core's
SpectraStim^TM, SpectraScan^®, and PackScan^® technologies to identify serious
problems with the gravel pack completions used for sand control. The
diagnostic services allowed both clients to remediate faulty gravel packs that
would have allowed abrasive sand to flow into, and erode, wellbore tubulars.
The preemptive remediation potentially saved both operators hundreds of
millions of dollars in future remediation costs and lost production.

There was a significant increase in demand during the first quarter for Core's
KODIAK^TM Enhanced Perforating Systems^TM energetic technology, which combines
the Company's HERO^® High Efficiency Reservoir Optimization perforating
charges (now API-certified as the industry's deepest penetrating perforating
charges) with proprietary accelerator propellant pellets to boost the
effectiveness of the perforating/stimulating event. The detonation of the
perforating charge initiates a complex, sequentially oxidizing reaction of the
solid rocket fuel pellets, thereby generating a high-pressure pulse of gases.
This pulse then initiates and propagates fractures ("mini-fracs") into the
unconventional reservoir sequence, creating cleaner perforation tunnels,
improving stimulant/proppant injection, and increasing hydrocarbon
production. Moreover, the propellant-activated mini-frac can potentially
reduce the frac breakdown pressure of the reservoir. Lowering the formation
frac breakdown pressure should, in turn, reduce the amount of compressive
horsepower needed at the surface, thereby lowering frac stimulation costs.

Reservoir Management

Reservoir Management operations posted its most profitable quarter in Company
history in the first quarter of 2014. Revenue for the quarter totaled
$27,367,000, which generated $10,559,000 in operating income, an all-time
quarterly record, which is up over 7% year-over-year and drove significant
margin expansion. Operating margins rose to 39%.

Reservoir Management introduced two new joint-industry unconventional
projects. The first, the Eaglebine Play - Reservoir Characterization and
Project Properties, is an extension of Core's highly successful South Texas
Eagle Ford Shale Project and focuses on the Eagle Ford shale extension into
East Texas and the overlying Woodbine sandstones. Initial drilling results
have been encouraging, with production ranging from 600 to 1,254 barrels of
oil equivalent per day. Most of the operators in the play have joined the
project. The second project focuses on the liquids window of the Woodford
Shale in the Permian Basin and in Oklahoma. This project is designed to
evaluate the prospectivity of the Woodford in areas not currently being
exploited by operators. In the quarter, the Company also added members to its
Permian Basin projects, bringing the total number of participating companies
to 66.

Internationally, Reservoir Management continued to focus on West and East
Africa development projects. Core completed the second phase of its Tanzania
Reservoirs and Seals project and Uganda Study, culminating in workshops and
seminars for the member companies. The Company also initiated new projects in
Mozambique and Senegal. These studies are directed toward providing data sets
consisting of biostratigraphy, geology, reservoir quality, petrophysical
properties, and seal evaluation with ties to seismic data sets for companies
exploiting these deepwater provinces.

Free Cash Flow, Share Repurchases, Dividends, Capital Returned To Shareholders

During the first quarter of 2014, Core Laboratories generated $65,624,000 of
cash from operating activities and had capital expenditures of $7,668,000,
yielding $57,956,000 in FCF. Core converted over 22 cents of every revenue
dollar into FCF, one of the highest conversion rates for the oilfield services
sector.

The FCF in the first quarter 2014, along with borrowings from the Company's
revolving credit facility, was used to pay $22,500,000 in cash dividends and
to repurchase 254,340 shares. Core's outstanding diluted share count of
45,132,000 shares stands at its lowest level in 16 years. In all, Core has
reduced its diluted share count by over 37,000,000 shares and has returned
over $1.73 billion to its shareholders, equaling over $38 per diluted share,
via diluted share count reductions, special dividends, and quarterly dividends
since implementing its Shareholder Capital Return Program over 11 years ago.

On 13 January 2014, the Company's Board announced a quarterly cash dividend of
$0.50 per share of common stock that was paid on 21 February 2014 to
shareholders of record on 24 January 2014. This amount represented a 56%
increase over the quarterly dividends of $0.32 per share that were paid in
each quarter of 2013, and if paid each quarter of 2014, will equal a payout of
$2.00 per share of common stock. Dutch withholding tax was deducted from the
dividend at the rate of 15%.

On 14 April 2014, the Board announced a quarterly cash dividend of $0.50 per
share of common stock payable in the second quarter of 2014. The second
quarter cash dividend will be payable on 23 May 2014 to shareholders of record
on 25 April 2014. Dutch withholding tax will be deducted from the dividend
at a rate of 15%.

Return On Invested Capital

As reported in previous quarters, the Company's Board established an internal
performance metric of achieving an ROIC in the top decile of the oilfield
service companies listed as Core's peers by Bloomberg Financial. The Company
and its Board believe that ROIC is a leading performance metric used by
shareholders to determine the relative investment value of publicly traded
companies. Further, the Company and its Board believe shareholders will
benefit if Core consistently performs in the highest ROIC decile among its
Bloomberg peers. According to the latest financial information from
Bloomberg, Core Laboratories' ROIC was the highest of any of the oilfield
service companies listed in its Comp Group. Several of the peer companies
failed to post ROIC that exceeded their WACC, thereby eroding capital and
shareholder value. Core's ratio of ROIC to WACC is the highest of any company
in the Comp Group.

Comp Group companies listed by Bloomberg include Halliburton, Schlumberger,
Carbo Ceramics, FMC Technologies, Baker Hughes, Cameron International,
Oceaneering, National Oilwell Varco, and Oil States International, among
others. Core will update its ROIC compared with the oilfield services sector
for the first quarter 2014 in its second quarter 2014 earnings release.

Second Quarter 2014 And Full-Year 2014 EPS Guidance

Core Lab anticipates a continuation of the improving trend experienced in the
latter part of the first quarter which began in March. Since that time, North
American activity and that in the international arena have increased as well.
The Company believes that second quarter 2014 North American activity levels
will continue to ramp up from the weather-affected first quarter levels which
will drive its expected earnings higher than previous implied guidance based
on our prior full year 2014 outlook. Therefore, Core expects second quarter
revenue to range between $280,000,000 and $286,000,000 which would be up about
8% year-over-year. Using the range of revenue guidance and applying
approximately 35% to 40% sequential incremental margins, second quarter 2014
EPS guidance would range from $1.48 to $1.53 which would be up over 14%
year-over-year. FCF for the quarter is expected to be approximately
$70,000,000, once again exceeding net income for the period. This operational
guidance excludes foreign currency translations or any shares that may be
repurchased in the second quarter. A 24.0% effective tax rate is assumed for
the quarter.

Based on the anticipated increases in worldwide activity levels, Core believes
that full-year 2014 revenue will range between approximately $1,155,000,000
and $1,175,000,000, up 8% year-over-year, with full-year EPS ranging from
approximately $6.00 to approximately $6.25, up 15% year-over-year, when using
first quarter EPS, ex-fx. Operating income margins are expected to expand to
33%, increasing approximately 200 basis points over 2013 levels.

Core expects FCF totals to exceed $300,000,000 in 2014, with the Company's
client-directed capex program to be slightly greater than in 2013 and to be
more than offset by continued improvements in working capital efficiencies.
The Company, once again, has significantly increased its quarterly dividend in
2014, while continuing its Share Repurchase Program, thereby expanding its
Shareholder Capital Return Program.

The Company has scheduled a conference call to discuss Core's first quarter
2014 earnings announcement. The call will begin at 7:30 a.m. CDT/2:30 p.m.
CEST on Thursday, 24 April 2014.
To listen to the call, please go to Core's website at www.corelab.com.

Core Laboratories N.V. (www.corelab.com) is a leading provider of proprietary
and patented reservoir description, production enhancement, and reservoir
management services used to optimize petroleum reservoir performance. The
Company has over 70 offices in more than 50 countries and is located in every
major oil-producing province in the world.

This release includes forward-looking statements regarding the future revenue,
profitability, business strategies and developments of the Company made in
reliance upon the safe harbor provisions of Federal securities law. The
Company's outlook is subject to various important cautionary factors,
including risks and uncertainties related to the oil and natural gas industry,
business conditions, international markets, international political climates
and other factors as more fully described in the Company's 2013 Form 10-K
filed on 13 February 2014, and in other securities filings. These important
factors could cause the Company's actual results to differ materially from
those described in these forward-looking statements. Such statements are based
on current expectations of the Company's performance and are subject to a
variety of factors, some of which are not under the control of the Company.
Because the information herein is based solely on data currently available,
and because it is subject to change as a result of changes in conditions over
which the Company has no control or influence, such forward-looking statements
should not be viewed as assurance regarding the Company's future performance.
The Company undertakes no obligation to publicly update any forward looking
statement to reflect events or circumstances that may arise after the date of
this press release, except as required by law.



CORE LABORATORIES N.V. & SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(amounts in thousands, except per share data)
(Unaudited)
                                                 Three Months Ended
                                                 31 March 2014  31 March 2013
REVENUE                                          $  262,903     $  260,927
OPERATING EXPENSES:
         Costs of services and sales             161,669        163,645
         General and administrative expenses     10,519         12,809
         Depreciation and amortization           6,633          6,025
         Other (income) expense, net             1,255          (589)
OPERATING INCOME                                 82,827         79,037
Interest expense                                 2,363          2,269
INCOME BEFORE INCOME TAX EXPENSE                 80,464         76,768
INCOME TAX EXPENSE                               19,311         20,036
NET INCOME                                       61,153         56,732
NET INCOME ATTRIBUTABLE TO
                                                 89             216
NON-CONTROLLING INTEREST
NET INCOME ATTRIBUTABLE TO CORE
                                                 $  61,064      $  56,516
LABORATORIES N.V.
Diluted Earnings Per Share:                      $  1.35        $  1.22
WEIGHTED AVERAGE DILUTED COMMON SHARES           45,182         46,493
OUTSTANDING
SEGMENT INFORMATION:
Revenue:
Reservoir Description                            $  125,256     $  125,245
Production Enhancement                           110,280        107,431
Reservoir Management                             27,367         28,251
         Total                                   $  262,903     $  260,927
Operating income:
Reservoir Description                            $  34,853      $  34,851
Production Enhancement                           37,202         34,238
Reservoir Management                             10,474         9,846
Corporate and other                              298            102
         Total                                   $  82,827      $  79,037



CORE LABORATORIES N.V. & SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
(amounts in thousands)
ASSETS:                                        31 March 2014  31 December 2013
                                               (Unaudited)
Cash and Cash Equivalents                      $  23,253      $   25,088
Accounts Receivable, net                       209,234        201,322
Inventory                                      50,906         46,821
Other Current Assets                           35,115         30,637
        Total Current Assets                   318,508        303,868
Property, Plant and Equipment, net             141,758        138,824
Intangibles, Goodwill and Other Long Term      220,097        218,318
Assets, net
        Total Assets                           $  680,363     $   661,010
LIABILITIES AND EQUITY:
Accounts Payable                               53,715         50,821
Other Current Liabilities                      94,746         84,954
        Total Current Liabilities              148,461        135,775
Long-Term Debt & Lease Obligations             279,000        267,002
Other Long-Term Liabilities                    85,968         88,844
Total Equity                                   166,934        169,389
        Total Liabilities and Equity           $  680,363     $   661,010



CORE LABORATORIES N.V. & SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW
(amounts in thousands)
(Unaudited)
                                               Three Months Ended
                                               31 March 2014
CASH FLOWS FROM OPERATING ACTIVITIES           $    65,624
CASH FLOWS FROM INVESTING ACTIVITIES           (10,475)
CASH FLOWS FROM FINANCING ACTIVITIES           (56,984)
NET CHANGE IN CASH AND CASH EQUIVALENTS        (1,835)
CASH AND CASH EQUIVALENTS, beginning of period 25,088
CASH AND CASH EQUIVALENTS, end of period       $    23,253

Non-GAAP Information

Management believes that the exclusion of certain income and expenses enables
it to evaluate more effectively the Company's operations period-over-period
and to identify operating trends that could otherwise be masked by the
excluded Items. For this reason, we used certain non-GAAP measures that
exclude these Items; and we feel that this presentation provides the public a
clearer comparison with the numbers reported in prior periods.



Reconciliation of Operating Income
(amounts in thousands)
(Unaudited)
                                            Three Months Ended
                                            31 March 2014
Operating income                            $    82,827
Foreign exchange losses                     1,600
Operating income excluding foreign exchange $    84,427



                                         Three Months Ended 31 March 2014
                                         Reservoir    Production   Reservoir
                                         Description  Enhancement  Management
Operating income                         $  34,853    $  37,202    $  10,474
Foreign exchange losses                  528          938          85
Operating income excluding foreign       $  35,381    $  38,140    $  10,559
exchange



Reconciliation of Net Income
(amounts in thousands)
(Unaudited)
                                      Three Months Ended
                                      31 March 2014
Net income                            $    61,064
Foreign exchange losses (net of tax)  1,216
Net income excluding foreign exchange $    62,280



Reconciliation of Earnings Per Diluted Share
(Unaudited)
                                                       Three Months Ended
                                                       31 March 2014
Earnings per diluted share                             $     1.35
Foreign exchange losses (net of tax)                   0.03
Weather disruption & project delay losses (net of tax) 0.07
Pro-Forma earnings per diluted share                   $     1.45

Free Cash Flow

Core uses the non-GAAP measure of free cash flow to evaluate its cash flows
and results of operations. Free cash flow is an important measurement because
it represents the cash from operations, in excess of capital expenditures,
available to operate the business and fund non-discretionary obligations. Free
cash flow is not a measure of operating performance under GAAP, and should not
be considered in isolation nor construed as an alternative consideration to
operating income, net income, earnings per share, or cash flows from
operating, investing, or financing activities, each as determined in
accordance with GAAP. You should also not consider free cash flow as a measure
of liquidity. Moreover, since free cash flow is not a measure determined in
accordance with GAAP and thus is susceptible to varying interpretations and
calculations, free cash flow as presented may not be comparable to similarly
titled measures presented by other companies.

Computation of Free Cash Flow
(amounts in thousands)
(Unaudited)
                                           Three Months Ended
                                           31 March 2014
Net cash provided by operating activities  $    65,624
Capital expenditures                       (7,668)
Free cash flow                             $    57,956

Logo - http://photos.prnewswire.com/prnh/20100712/DA33898LOGO

SOURCE Core Laboratories N.V.

Website: http://www.corelab.com
Contact: Richard L. Bergmark, + 1 713 328 2101; Chris Hill, Investor
Relations: + 1 713 328 6401, investor.relations@corelab.com
 
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